Beware of Statutory Limits on Change Orders
February 18, 2015 —
Craig Martin – Construction Contractor AdvisorWhile change orders are always part of construction projects, it’s important to know whether a public agency is limited on how much it can increase the scope of the work through change orders. A contractor in Virginia found out the hard way that the state agency did not have the authority to increase the scope of the project and thus the contractor could not collect for the extra work.
In Carnell Construction Corp. v. Danville Redevelopment & Housing Authority, the contractor was hired by the housing authority to prepare a site for construction. The project did not go well and both sides blamed the other for delays and increased costs. After being removed from the project, the contractor sued the housing authority for, among other things, breach of contract. The jury awarded the contractor a total of $915,000 for the housing authority’s failure to pay for extra work and improper removal.
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Craig Martin, Lamson, Dugan and Murray, LLPMr. Martin may be contacted at
cmartin@ldmlaw.com
Extreme Weather Events Show Why the Construction Supply Chain Needs a Risk-Management Transformation
July 24, 2023 —
Brad Barth - Construction ExecutiveA perfect storm of recent extreme weather events has exposed the fragility of North America’s construction supply chains amid an increasingly fluctuating, fast-changing risk landscape. Supply chains that were already reeling from resurgent demand for raw materials coming out of the pandemic have been further disrupted by major storms such as recent tornados in Arkansas and Mississippi. Such events can have a ripple effect across many distinct supply lines as exemplified when the 2021 Texas freeze caused railroad closures and knocked out both petrochemical and semiconductor plants, causing shortages that affected construction and many other industries.
The wide-ranging reverberations from these events demonstrate how stakeholders across all stages of capital projects increasingly share common vulnerabilities. Crucially, the way in which disruption from extreme weather events has caused project delays and cost overruns shows how time, cost and scope are increasingly interlinked and equally vulnerable to systemic risks.
Traditional project-management methods where risks are not collectively managed and mitigated by all stakeholders are becoming increasingly inadequate, as risks to cost, time and scope are often considered in isolation. The domino effect of supply-chain disruption across capital projects similarly shows the inadequacy of project-management models where suppliers are not afforded a key stake in the project (or sometimes even a seat at the planning table). This traditional model cannot adapt to sudden, systemic risks that disrupt multiple suppliers and ripple out across all stakeholders, deliverables and project-management metrics.
Reprinted courtesy of
Brad Barth, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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California’s Housing Costs Endanger Growth, Analyst Says
March 19, 2015 —
John Gittelsohn – Bloomberg(Bloomberg) -- California’s high housing costs threaten the state’s economy as workers increasingly struggle to afford a roof over their heads, the state Legislative Analyst’s Office said in a report released Tuesday.
“The state’s high housing costs make California a less attractive place to call home, making it more difficult for companies to hire and retain qualified employees, likely preventing the state’s economy from meeting its full potential,” Chas Alamo and Brian Uhler, senior fiscal and policy analysts with the office, said in the study.
California was home to four of the five most expensive U.S. metropolitan markets for single-family home sales in the fourth quarter of last year, led by a median home price of $855,000 in the San Jose, Sunnyvale and Santa Clara area, according to the National Association of Realtors. San Francisco ranked second, with Honolulu and the California cities of Anaheim and San Diego rounding out the top five. The suburbs north of New York City and greater Los Angeles followed.
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John Gittelsohn, BloombergMr. Gittelsohn may be contacted at
johngitt@bloomberg.net
How to Drop a New Building on Top of an Old One
December 05, 2022 —
Kriston Capps - BloombergFaçadectomy. That’s the tongue-in-cheek term for a widely unloved architectural compromise that developers sometimes strike: saving the historic veneer of an existing building while demolishing and replacing its internal structure. Façade preservation is especially popular in Washington, DC, where a federal cap on the height of buildings and the strength of the preservationist cause locally makes the case for adapting existing structures, even at great expense.
Façadism is rarer where cheaper tear-downs are possible, but over the last 40 years, this trend hit its stride on the East Coast. Prominent examples include the Spanish Embassy in DC and the Penn Mutual tower in Philadelphia.
A new condo tower in Boston’s South End isn’t a typical façadectomy. The development at 100 Shawmut Avenue looks as if a glassy modern building had been plopped down on top of an old warehouse. According to Tom Schultz, associate for The Architectural Team, the Boston-area firm behind the project, the case for incorporating a six-story warehouse into a new residential project wasn’t merely aesthetic. The site and structure lent itself to building up.
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Kriston Capps, Bloomberg
A UK Bridge That Is a Lesson on How to Build Infrastructure
November 15, 2017 —
Cameron J. Bell - Engineering News-RecordThis country’s infrastructure—bridges, airports, dams and levees—needs wide-scale repair and renewal. The United Kingdom’s new Queensferry Crossing bridge, connecting Edinburgh to Fife in Scotland, sets a new standard for how to do it. The result speaks for itself: The Queensferry Crossing, a three-tower, 1.7-mile-long cable-stayed bridge, debuted in early September well within budget and a manageable eight-month time delay—a rare occurrence among bridges. According to research at the University of Oxford’s Saïd Business School, nine out of 10 fixed links (bridges and tunnels) suffer an average cost overrun of 34% and a time delay of roughly two years.
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Cameron J. Bell, ENR ENR may be contacted at
ENR.com@bnpmedia.com
Construction Firm Sues Town over Claims of Building Code Violations
November 06, 2013 —
CDJ STAFFParadigm Development and Construction LLC has sued Bristol Township, Pennsylvania over the allegation that town building officials colluded with their clients to issue building code violations after Paradigm prepared to sue the clients. John and Patricia Conard hired Paradigm to construct an addition to their home. During the process, the work went through nine inspections before Paradigm stopped work over a payment dispute.
Some months later, Bristol Township issued a notice that Paradigm had 37 violations of the building code. Paradigm alleges that the source was a set of photographs provided by the Conards to the building officials. The lawsuit states that Paradigm “was not notified of any construction deficiencies at the Conard property, and was not provided with an opportunity to discuss, defend or refute the allegations of the Municipal Defendants that Plaintiff has violated the Bristol Building code.”
The violation notice was withdrawn a few months later.
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Define the Forum and Scope of Recovery in Contract Disputes
March 02, 2020 —
Phillip L. Sampson Jr. & Richard F. Whiteley - Construction ExecutivePrivate and public companies spend billions of dollars every year on construction projects. For these projects, time is money, and incorporating the most advantageous legal terms in the construction contract can minimize the number and extent of disputes, and ultimately save money.
It is important to remember that the provisions in construction contracts are negotiable. In a common scenario, the contractor and owner informally agree to the scope of a construction project and its cost. When it is time to reduce the deal to writing, the contractor and owner decide to use an AIA contract that appears to be a standard form. The document looks to be on point, and the parties simply need to fill in a few blanks with the cost and scope-specific information. Presuming that the AIA provisions are mutually protective and beneficial, the parties do not think about altering the “standard” terms. They sign the contract, and the project begins.
Months later, the owner and contractor end up disputing delays on the project, entitlement to various payments, and whether certain aspects of the work are defective. At this point, the parties realize that some of the contract’s terms could have been drafted a bit more favorably—but by that time it’s too late. So remember, construction contracts are negotiable, even provisions within “standard” AIA contracts.
Reprinted courtesy of
Phillip L. Sampson Jr. and Richard F. Whiteley, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
Mr. Sampson may be contacted at phillip.sampson@bracewell.com.
Mr. Whiteley may be contacted at richard.whiteley@bracewell.com.
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GRSM Named Among 2025 “Best Law Firms” by Best Lawyers
December 23, 2024 —
Gordon Rees Scully MansukhaniGordon Rees Scully Mansukhani has been recognized in the 2025 "Best Law Firms" survey published by Best Lawyers.
To be eligible for a 2025 ranking, a law firm must have at least one lawyer recognized in the 2025 edition of the Best Lawyers in America in a "Best Law Firms" practice area and geographic jurisdiction. GRSM announced earlier this year that 166 lawyers were recognized in the 2025 edition of Best Lawyers in America®, while 74 lawyers were named to the 2025 edition of Best Lawyers: Ones to Watch. Explore the full list of GRSM recognized attorneys.
No aspect of this advertisement has been approved by the Supreme Court of New Jersey. Prior results do not guarantee a similar outcome. For details about Best Law Firms' methodology, please click here.
The firm received National "Tier 1" rankings in the following areas:
- Admiralty and Maritime Law
- Commercial Litigation
- Construction Law
- Insurance Law
- Litigation – Construction
- Mass Tort Litigation / Class Actions – Defendants
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Gordon Rees Scully Mansukhani